Why QUIZ plc (LON:QUIZ) Could Be Worth Watching

QUIZ plc (LON:QUIZ), might not be a large cap stock, but it saw a double-digit share price rise of over 10% in the past couple of months on the AIM. As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy?

Today I will analyse the most recent data on QUIZ’s outlook and valuation to see if the opportunity still exists. See our latest analysis for QUIZ

What Is QUIZ Worth?

Good news, investors! QUIZ is still a bargain right now according to my price multiple model, which compares the company’s price-to-earnings ratio to the industry average.

In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that QUIZ’s ratio of 3.98x is below its peer average of 11.24x, which indicates the stock is trading at a lower price compared to the Specialty Retail industry. Although, there may be another chance to buy again in the future.

This is because QUIZ’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

Can we expect growth from QUIZ?

earnings-and-revenue-growthAIM:QUIZ Earnings and Revenue Growth March 31st 2023

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price.

With revenues expected to grow by a double-digit 13% over the next couple of years, the outlook is positive for QUIZ. If the level of expenses is able to be maintained, it looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? Since QUIZ is currently trading below the industry PE ratio, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price.

However, there are also other factors such as capital structure to consider, which could explain the current price multiple. Are you a potential investor? If you’ve been keeping an eye on QUIZ for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy QUIZ.

But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed assessment. Keep in mind, when it comes to analysing a stock it’s worth noting the risks involved. At Simply Wall St, we found 1 warning sign for QUIZ and we think they deserve your attention.

If you are no longer interested in QUIZ, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Valuation is complex, but we’re helping make it simple.

Find out whether QUIZ is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation.

We aim to bring you long-term focused analysis driven by fundamental data.

Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

Simply Wall St has no position in any stocks mentioned.

Tags:

black-circles listed on couponmatrix.ukbullguard listed on couponmatrix.ukmachine-mart listed on couponmatrix.ukolympic-holidays listed on couponmatrix.uktravelodge listed on couponmatrix.ukvictoria-plum listed on couponmatrix.uk
black-circles listed on couponmatrix.ukBlackcircles.com is the UK's leading online tyre retailer and pride themselves on providing tyres locally for less. With a nationwide fitting network of over 2000 independent garages in addition to a Trustpilot score of 9.5/10, they are an ideal first choice if you are in the market for not only tyres, but a first-rate customer experience too. Pick up a Black Circles discount code and same on all-season tyres snd more fi=or all types of vehicle. With Groupon's amazing money saving offers you can save significantly on your next tyre purchase.
bullguard listed on couponmatrix.ukFeel safe online and in the digitised world with BullGuard, the only protection software guaranteed to keep you secure whilst you surf. When you use a BullGuard discount code on your purchase, you can save money on security and with so many different packages available, you’re sure to find one that fits your requirements. Visit the website today to have a look at the different options and find your very own BullGuard.
machine-mart listed on couponmatrix.ukWhen the toolbox beckons but you’re a few screws short of your next renovation, look to Machine Mart – the quintessential tools and equipment supplier for any DIY enthusiast. From power drills to pressure washers, there’s no domestic or commercial tool out there that a Machine Mart voucher can’t make yours for a fraction of the price. So whether you’re a painter, builder or woodcarver, gear up to the nines at Machine Mart.
olympic-holidays listed on couponmatrix.ukOlympic Holidays is the leading UK holiday specialist to sunny island destinations across Europe. Voted Best Tour Operator to Hellenic Europe 2015 by the British Travel Awards, Olympic Holidays offer holiday packages to Greece, Corsica, Cyprus, Sardinia, Sicily and so many more. Book your dream holiday with an Olympic Holidays discount code and explore the beautiful Mediterranean and beyond for a fraction of the price. Start your sun-soaked getaway the right way with Olympic Holidays today!
travelodge listed on couponmatrix.ukTravel on a budget with Travelodge for a holiday that’s easier on your credit card. From Bristol to Barcelona, there are over 590 Travelodge hotels dotted across the UK, Ireland and Spain, so there’s an affordable stay guaranteed wherever you’re travelling. Room rates start from an incredible £32 or less and amenities like free WiFi and the famous Travelodge breakfast are hard to pass up – families will especially love the free breakfast for kids! Book your room with a Travelodge discount code from Groupon to take the cost down further. We’re tracking all the best Travelodge offers to help budgeters make the most of their break, including exclusive discount codes and gift cards with bookings, so check our page to nab a premium room at the best price. With a Travelodge in every city and so many ways to save, nothing tops Travelodge on affordability, convenience and great value for money.
victoria-plum listed on couponmatrix.ukWhether you prefer to luxuriate in a free-standing bathtub or wash away the day in a stylish shower, the bathroom specialists at Victoria Plum can help you create your dream bathroom. Grab a Victoria Plum discount code from us as you browse beautiful bathroom suites or the individual products you'd like featured in one of the most-used rooms in your house! From vintage looks to contemporary finishes, the Victoria Plum collection can nail the right style for any taste, budget or space while keeping your hard-earned cash from spiralling down the drain.